DETERMINANTS OF COMMERCIALIZATION OF SMALLHOLDER ONION PRODUCERS IN HARAMAYA DISTRICT, EAST HARARGHE ZONE, OROMIA REGION, ETHIOPIA

Abstract

Eastern Hararghe Zone of Oromia region has the potential comparative advantage of producing vegetables. Despite this potential the farmers in the study area rarely utilize this opportunity to improve their livelihood. This study was undertaken to identify the determinants of smallholder farmers’ participation in onion market and level of commercialization in Haramaya District of East Hararghe Zone. Both primary and secondary data were used to achieve objective of the study. A multi-stage random sampling technique was used to select 156 farm household heads from six sample kebeles in the study area. Structured survey schedule was used to collect data from sampled farmer household head. Descriptive statistics and econometric methods were used to analyse data. Heckman two stage model was applied to analyse the determinants of farmer household`s decision to participate in the onion market and level of commercialization. The first stage of Heckman model result revealed that irrigation, and fertilizer positively affected the decision to participate in onion market. The second stage indicted that, education of farmer household head, and extension services negatively affect level of commercialization. Furthermore, fertilizer positively affects level of commercialization. Thus, intervention mechanisms that help farmers get access to sustainable and adequate fertilizer, and irrigation that boost smallholder onion market participation and commercialization should be pursued